Shanghai Index Extends Gains for Ninth Session, Supported by Yuan Strength and Consumption Stimulus

Shanghai – EcoPulse24

The Shanghai Composite Index continued its gains for the ninth consecutive session, marking its longest rally in over a year, and closed slightly higher by 0.04% at 3,965 points. The rise was supported by the strength of the Chinese yuan and new government initiatives targeting domestic demand stimulation.

Meanwhile, the Shenzhen Composite Index ended the trading session down 0.5% at 13,537 points, under pressure from technology and new energy sector stocks.

China's Ministry of Finance announced that fiscal policy for the coming year will be "more proactive," with a clear focus on boosting domestic consumption, supporting technological innovation, and expanding social safety nets. These measures are aimed at offsetting weak industrial sector profits, as reflected in November's data.

Analysts believe that policy support and the improved performance of the Chinese currency are providing positive momentum for equities. However, as major indices approach their annual highs, technical resistance could limit further gains in the short term.

At the sector level, defense stocks led the gains with a rise of 1.1%, coinciding with China's announcement of military drills near Taiwan. Energy and banking shares also posted gains of around 1% each. Conversely, electric vehicle, new energy, and battery stocks came under clear pressure, falling between 1.7% and 1.9%, amid expectations of slowing domestic demand for electric cars and weaker exports in the coming period.